Price drops are expected but not 8 months in.  

Not trolling at all. You can look at things black and white but it's not always as straight forward as that.

I do actually believe that they might of chose not to but you can't rule out the theory in the OP.

Little more open minded and not being dismissive would be nice. Having a price cut might not actually mean losing more money for reason explained in thread.

Ultimately, the PS4 is selling much better than the Xbox One. Sure, the Xbox One sold a few more consoles, but that's good for us. If the Xbox One actually failed that would leave the PS4 as the unopposed heavyweight console. That would be bad for everyone. The PS4 didn't need a price cut because:

A) The PS4 is already beating the Xbox One in overall sales by a very large margin.

B) The PS4 is still selling very well. A price cut might get a few hundred thousand more PS4s sold, but even if it did it would be at more of a loss to Sony. Price cuts are the thing you do last when you need to sell more consoles. They don't need to sell more consoles since they've sold way more than the Xbox One anyway. They'll make a price cut when Microsoft starts getting close, or when they're no longer selling PS4s at the current price. I think that will be a little while though.

Not doubting that at all.

To answer your question what you said is true but you have to consider that in the past Ms consoles have outsold Sony at a similar rate during the holiday season ,   I'm not argueing about it being a factor just the degree .

Why would Sony want to drop the price of PS4 when it's selling more than Xbone and Wii U combined?

Of course, sales always ramp up very quickly in Nov and Dec.

360 outsold PS4 at a similar rate in previous years but the 360 also beat the PS3 in prior months.

This time the X1 went from selling half of what the PS4 was selling to beating it quite comfortable. The holiday should bring similar percentage rises to both consoles so without any price cut from each we should of seen the PS4 and X1 both get boosted for the holidays but the PS4 still beating the X1 at a similar rario. With the price cut the X1 sold 600k more than PS4 in 2 months. I'm guesing that the price cut can be credited for over half of the X1 sales. Lets not forget how aggressive the price cuts were $70 off with 2 games.

Again we can only use trends, and at the moment I can't access any consoles data to check.

Nov US - PS4 800k - X1 - 1200

Dec US - PS4 1100k - X1 - 1400

Estimate if bothe were at $400

Nov US - PS4- 1000k - X1 600k

Dec - PS4 1400k - X1 800k

So I'm guessing that PS4 would of sold 500k more and the X1 1200k less if both didn't have price cuts and 700k less consoles sold in total.

Of course I'm just guessing trying to use pre price cut data, dec and nov data and past trends. I could be way off.

You are making huge assumptions about supply. If you remember post holidays PS4 was low and out of stock at numerous places in the US. It was also reportately sold out around Europe. If they had the supply, this wouldn't have happened. They wouldn't have gotten that low, as they would of been able to replenesh it. That's the one downside with selling all year around, you don't have stock piles of units ready to sell.

So maybe they could sell out, but your probably only looking at a sub 200k increase, but at what cost? You also risk annoying a lot of customers where it's sold out. Marketing a sold out product could backfire leading consumers to purchase a substitute good. I'd say it's best to wait and stock pile for next year by increasing production after the next cost revision.

Exactly, this is the point I'm trying to make. If they had the stock they were in the position to capitalise on the holiday with a price cut. But if they didn't have the stock they were never in the position to do this.

My quoted comment was supposed to show how they could of prevented losing a lot of ground to the X1 in the US (Uk maybe).

I still stand by my op. Not saying it happend or that I 100% believe it. Its just  my theory on why they didn't have a price cut, temporary or permanent.

But I also believe it could be that they didn't feel like they needed one. I'm not that narrow minded to believe it could only be down to one thing.

There is nothing narrow minded by believing the stock was low. That has already been proven with inventory checks post holidays and Christmas Eve. I hate when people use the word narrow minded to combat using logic. That being said, they could of shipped more consoles to the US at the expense of the rest of the word, but with countries like Germany pretty much sold out, what would they gain?  Leading everywhere but selling the same amount at a higher loss seems silly.